Time Limit for conclution of Audit

[VENU K]

In a departmental audit these were the timelines as recorded and confirmed by the department

1. ADT 01 issued on 18.12.2023

2. Audit Visit to Regd persons premises 06.08.2024

3. Complete Submission of details sought as accepted by department 25.09.2024

4. Audit observation under Rule 101(4) 14.11.2024

5. Extension granted by commissioner for 3 months as per proviso to Sec 65(4) on  27.12.2024

6. Final Audit Report in ADT 02 issued on 12.02.2025

Our contention is that 3 months to complete audit  as per Sec 65(4) expires on 24.12.2024 ie three months after date of records were made available. Therefore the audit gets time barred on 24.12.2024.

Commissioner has no power to grant extension to an already time barred audit on 27.12.2024.

Experts views solicited on this matter. Please note that the date of commencement of audit was confirmed as 25.09.2024 by the Department in the SCN.

[Sadanand Bulbule]

In my opinion, the audit proceedings culminating in ADT-02 dated 12/02/2025 are time barred under Section 65[4] and laible to be set aside. 

Make a representation highlighting factual & legal position to the Proper officer.  Or else move straight way to High Court on lack of jurisdiction.

AI Summary

Time-bar under section 65(4) limits departmental audit actions and renders post-deadline extensions vulnerable to challenge.
The department's audit timeline culminated in ADT-02 after a Commissioner-granted three-month extension under the proviso to Section 65(4). The core legal question is whether the statutory three-month period began when records were made available and thus expired before the extension; if so, the later extension and ADT-02 are contended to be time barred and beyond the Commissioner's power, warranting a representation and potential judicial challenge for lack of jurisdiction.